Reco Students Handbook

Your Career in Real EstateA Student Handbook

Ontario Real Estate Association99 Duncan Mill Road Don Mills, Ontario M3B 1Z2Telephone: 416-445-9910Fax: 416-445-2644Toll Free: 1-800-265-OREA (6732)www.orea.com

REALTOR® is a registered trademark of REALTOR Canada Inc., a company owned equally by the Canadian Real Estate Association and the National Association of REALTORS® and refers to registered real estate practitioners who are members of The Canadian Real Estate Association.

Printed in Canada ©2011 OREA

The Real Estate Council of Ontario (RECO) was established in May 1997 to administer the Real Estate and Business Brokers Act, 2002 (REBBA 2002). RECO’s mission is to regulate the activity of trading in real estate in the public interest.

Notes


The Ontario Real Estate Association (OREA) was founded in 1922 to organize real estate activities and develop common goals in Ontario, such as promoting higher industry standards, protecting the general public, and preserving private property rights.


The educational requirements to become eligible for registration as a Real Estate Salesperson or Broker with the Real Estate Council of Ontario (RECO)

2 OREA Real Estate College Student Handbook

“Buy land, they’re not making it anymore” Mark Twain

OREA Real Estate College Student Handbook 3

“Buy land, they’re not making it anymore” Mark Twain


Real Estate and You – First Things First

Is this the profession for me? 10A snapshot of the profession 10Real Estate today and tomorrow 10The role of the Real Estate Salesperson 11RECO is… 12OREA is… 13The OREA Real Estate College is… 13To qualify, I must meet... 14My professional choices are… 14My personal skills should be… 17

What should I do first? 18Look at the big picture 18Get the help you need 18Assess your personal finances 18Set a budget 19Make sound financial decisions and invest in yourself 19

Your Steps to Professional Success

How do I become a registered Salesperson? 22 The Salesperson Registration Education Program 22Education Timeline 22

The Salesperson Registration Education Program 23

Real Estate as a Professional Career 24Land Structures and Real Estate Trading 24The Real Estate Transaction – General 24The Residential Real Estate Transaction 24The Commercial Real Estate Transaction 24The Articling Segment 24

The Broker Registration Education Program 25

How do I become a Real Estate Broker? 26Becoming a Broker 26

How do I enrol in the OREA Real Estate College? 27Required Materials 27Course Completion 27Other Costs 28

Contents


What are my learning options? 29Classroom 29e-Learning 29Correspondence 30Course Textbooks 30My Portfolio 31

Course Descriptions

Introduction 35

Pre-registration Courses 37Real Estate as a Professional Career 37Land Structures and Real Estate Trading 38The Real Estate Transaction – General 39The Residential Real Estate Transaction 41The Commercial Real Estate Transaction 41

Articling Courses 42Real Property Law 42Principles of Appraisal 43Principles of Mortgage Financing 44Real Estate Investment Analysis 45Principles of Property Management 46

The Broker Course 47Real Estate Broker Course 47

College Program Standards

College Program Standards 50College Instructor Standards 58Examination Challenge Program 60

The Answers You Need

Where do I get answers to my questions? 64FAQs 65Steps to Enrolment 67 Contacting the OREA Real Estate College 67

authorized to deliver The Salesperson Registration Education Program and Broker Registation Education Program on my behalf. The agreement concluded an open and competitive request for proposals and a review process. OREA has a longstanding history of promoting professional development in Ontario’s real estate industry. OREA also has the ability to deliver the programs province-wide through multiple delivery channels; increasing accessibility to students and registrants while ensuring a consistent standard of education is provided to all students. Education is a critical component of consumer protection. It helps ensure that consumers are dealing with registrants who are equipped with current knowledge of REBBA 2002, in addition to issues and trends affecting Ontario’s real estate industry. The development of skilled and educated registrants also supports RECO’s strategic priority of promoting public confidence in the knowledge, competence and professionalism of registrants. I am confident that the education programs administered by OREA will continue to help us fulfil that commitment. Yours truly,

Allan T. Johnston Registrar, REBBA 2002

Part of my duties as Registrar of the Real Estate and Business Brokers Act, 2002 (REBBA 2002) is to establish the educational requirements for applicants seeking registration as Salespersons or

Brokers as well as for those already registered and enrolled in continuing education. I am also responsible for designating which organizations are authorized to deliver these courses. In July of 2008, the Real Estate Council of Ontario (RECO) signed an Educational Services Agreement with the Ontario Real Estate Association (OREA) as the designate

A message from the Registrar



The Director welcomes you

Real Estate can be a rewarding profession – personally, professionally and financially. Real Estate is also a very demanding, complex and ever-changing profession that requires talent,

skill and knowledge that must be developed, honed and kept current through a rigorous and fair educational process. That is where the OREA Real Estate College comes in. It is our designated role to deliver The Salesperson Registration Education Program and The Broker Registration Education Program. In addition, the OREA Real Estate College also delivers various continuing education courses designed expressly for real estate practitioners across Ontario. To do this in the best way possible for every student, the College makes its course offerings available via a number of educational models and study methods. As you proceed toward your goal of becoming registered as a Real Estate Salesperson or Broker by the Real Estate Council of Ontario (RECO), you will become more aware of the many key

services OREA provides to its members. The College maintains a steadfast commitment to excellence while continually developing exciting new products and services for committed individuals like yourselves who want to gain competence in the very dynamic and competitive real estate marketplace. Each year, several thousand students enrol in our Salesperson Registration Education Program and/or Broker Registration Education Program. The College has garnered many awards over the years, among them the Education Excellence Award from the Association of Real Estate Licensing Law Officials and the Education Program of the Year award from the Real Estate Educators Association – and we are proud of them. But the College does not exist to win awards. The College is here for you – that is our promise and we do everything we can to make that promise a reality for each of our students, every day. As Executive Director of the OREA Real Estate College, I welcome you. In this Student Handbook you will unfold your personal roadmap to meet the educational requirements for registration as a Real Estate Salesperson or Broker by RECO.

Enjoy the journey.

Oswald (Ozzie) Logozzo B.A. B.Ed. M.Ed. FRIExecutive DirectorOREA Real Estate College



Is this the profession for me? 10A snapshot of the profession 10Real Estate today and tomorrow 10The role of the Real Estate Salesperson 11RECO is… 12OREA is… 13The OREA Real Estate College is… 13To qualify, I must meet... 14My professional choices are… 14My personal skills should be… 17

What should I do first? 18Look at the big picture 18Get the help you need 18Assess your personal finances 18Set a budget 19Make sound financial decisions and invest in yourself 19

Real Estate and You – First Things First

Is this the profession for me?

A snapshot of the professionYou’re considering a career in real estate. For many people like yourself, this has proven to be a very rewarding choice. And it could be for you, too. Real estate is fast-paced and constantly evolving – an essential element in our country’s economy and the financial lives of Canadians everywhere. Each hour of every day in urban and rural areas across the country, thousands of real estate deals are negotiated by registered real estate professionals. That’s millions of dollars changing hands through the skills and knowledge of real estate Salespeople. It isn’t easy – and you wouldn’t expect it to be – given the legal, technological, marketing and other complexities of the real estate marketplace – but the potential rewards are limited only by your imagination and dedication to success. If you have the drive and determination, you can count on getting the

training, knowledge, guidance and support you need to apply for registration as a Salesperson with the Real Estate Council of Ontario upon successful completion of The Salesperson Registration Education Program. Real Estate today and tomorrowThe world is driven by real estate. Individual Ontarians everywhere want to buy or sell property. In many cases, a home is the largest single asset a person will ever own and, for


many, real estate equity forms the essential foundation of their personal wealth. Corporations come in many sizes and shapes but the one thing most have in common is real estate. Their holdings can range from manufacturing facilities and corporate offices to retail outlets. Whatever their size or use, a corporation’s real estate assets always have a profound effect on the balance sheet and bottom line. Today’s professional real estate registrants do much more than simply list and sell property. They alter destinies and make dreams come true for Canadians from every economic stratum. They help create jobs and fuel business development in communities from coast to coast. Put simply – in a profession where there is very seldom such a thing as a ‘simple’ real estate deal, they make real estate work for people and enterprise. And by so doing, they come to enjoy professional success along with the emotional and financial satisfaction that is a part of every successful real estate transaction.

The role of the Real Estate SalespersonThe real estate market is dynamic – and never more so than now. Legislation changes constantly. Technology evolves at the speed

of thought. Marketing strategies succeed through laser-like precision. The one constant in the real estate marketplace is this: knowledge is power. Not long ago, real estate was a paper-based pursuit. But today’s professional must go well beyond listing forms and into the new realms of integrated databases, PDAs, GPS units and virtual house tours. Completing your required registration education is just the beginning – be prepared to make multifaceted learning an integral part of your professional future. And be prepared for personal sacrifice too. Your time is your clients’ time. You’ll be constantly in and out of the office, obtaining listings, showing homes and negotiating agreements with buyers and sellers who often have little regard for the time of the day, or day of the week. Of course, there’s good news, too. A real estate career is never routine. Every transaction is different. Every day offers personal freedom, professional fulfilment and satisfaction. It takes effort, but if you thrive on opportunity and challenge, this could be the perfect profession for you – today and tomorrow.

“I am easily satisfied with the very best.” Winston Churchill


Real Estate is a regulated profession. When preparing for a career in real estate, it’s important to understand both the value of professional regulation and your obligations as a registrant. The Real Estate Council of Ontario (RECO) is responsible for regulating the activities of real estate brokerages, Brokers and Salespersons in Ontario. RECO administers the Real Estate and Business Brokers Act, 2002, and associated Regulations (referred to collectively as REBBA 2002) on behalf of the provincial government.

Protecting the Public InterestRECO regulates the activities of brokerages, Brokers and Salespersons trading in real estate in the public interest. The individual and collective interests of consumers and real estate registrants must always be balanced to ensure that the broader public interest is served. Protecting the public interest is achieved through many activities including:

• Enforcingstandardsrequiredtoobtain and maintain registration as a brokerage, Broker or Salesperson and delivering the duties of the Registrar, REBBA 2002 (The Registrar).• Establishingminimumrequirementsfor Pre-registration and Continuing Education courses.

RECO is…

• Conductingroutineinspectionsof brokerage offices to ensure compliance with REBBA 2002 and educating Brokers on correct procedures.• Addressinginquiries,concernsand complaints about the conduct of registrants received from all sources and taking appropriate action to protect the public interest.• Establishingandadministeringinsurance requirements.• Promotingongoingeducation,and competent, knowledgeable and professional service.

New SalespersonsUpon successful completion of The Salesperson Registration Education Program, you are eligible to make application to RECO and are required to make application to RECO to become registered as a Salesperson.

The Real Estate Council of Ontario3250 Bloor Street WestEast Tower, Suite 600Toronto, ON M8X 2X9

Tel (416) 207-4800 or 1-800-245-6910Fax (416) 207-4820www.reco.on.ca

At www.reco.on.ca, you will find MyWeb, an online service that allows registrants to access their personal registration education information such as the number of CE credits carried forward from the previous registration cycle, registration dates, fees owing and information concerning the status of renewal applications.


The Ontario Real Estate Association represents approximately 50,000 Brokers and Salespeople who are members of the province’s 42 real estate boards. As part of the association, the OREA Real Estate College provides all real estate registration courses in Ontario through The Salesperson Registration Education Program and The Broker Registration Education Program. OREA was founded in 1922 to organize real estate activities and develop common goals across the province. These goals include promoting higher industry standards, protecting the general public from unscrupulous Brokers and Salespeople, and preserving private property rights. OREA continually strives to improve the image of real estate professionals by enhancing educational and professional standards.

Ontario Real Estate AssociationOREA Real Estate College99 Duncan Mill RoadDon Mills, ON M3B 1Z2

Tel (416) 391-OREA (6732)or 1-866-411-OREA (6732)Fax (416) 445-2113www.orea.com

OREA is… The OREA Real Estate College is…

The OREA Real Estate College provides The Salesperson Registration Education Program and The Broker Registration Education Program as well as various continuing education courses in the field of real estate. All real estate professionals in Ontario must pass a comprehensive program of study to ready them for the complex business of trading in real estate. The OREA Real Estate College offers these required courses as designated by the regulating body, the Real Estate Council of Ontario (RECO). The College also offers a complete program of continuing education courses designed to provide life-long learning and to satisfy the requirement of continuing education for all registrants under the Real Estate and Business Brokers Act, 2002.


To qualify, I must meet…

Once you have successfully completed The Salesperson Registration Education Program and have become registered with RECO, you have great latitude to match your career in real estate with your personal preferences, interests, individuality, and income expectations. Here are some of your options:

Residential ResaleThis is the most popular, people-oriented choice of all real estate sales. Most individuals entering the profession begin here – with the listing and selling of existing homes – and then choose to move on to other marketplace activities. Your success will depend on your ability to communicate, to work independently, and to master various technical skills.

New Home SalesThis typically involves selling exclusive products for one or more builders/developers. You’ll need extensive technical knowledge about house construction, models and options, and available upgrades.

Condominium SalesChoose to focus on condominium sales in ‘niche’ markets such as waterfront

My professional choices are…

Admission Requirements

Applicants to The Salesperson Registration Education Program must:

• HaveanOntarioSecondarySchool Diploma or equivalent, or• Beatleast18yearsofageandpassa qualifying test approved by the Superintendent of Private Career Colleges, Ministry of Training, Colleges and Universities.

Details are available by contacting the OREA Real Estate College at (416) 391-6732 or 1-866-411-OREA (6732).

Registration Requirements

To trade in real estate you need to:

• BearesidentofCanada• Beatleast18yearsofage• CompletethePre-registrationSegment courses • Obtainemploymentwitharegistered brokerage and make application for registration within 12 months of successfully completing the last Pre- registration Segment course• Completeandsubmittheforms approved by the Registrar under REBBA 2002 accompanied by the relevant fee


condominiums or downtown lofts. You will need detailed knowledge about legislative requirements and unique ownership factors.

Rural and Agricultural SalesSalespeople may be involved in the sale of farmland not only for farming purposes but also for redevelopment and hobby/recreational uses. Knowledge of official plans, zoning bylaws and different types of rural business operations is vital.

Recreational SalesFrom seasonal waterfront cottages to year-round winterized homes, there’s plenty of diversity in this market choice. It’s about selling lifestyle. Your skills need to include extensive knowledge of rural/recreational planning, municipal regulations, environmental legislation, and other unique restrictions governing these properties.

Commercial Sales and LeasingThis career direction can involve industrial, retail, office, and/or business operations. And it is very demanding, with a heavy reliance on technical knowledge, investment calculations, and transaction complexity. You can find yourself dealing with millions of dollars, lengthy negotiations, and long closing dates.

Non-Selling Career OptionsIf selling isn’t your primary motivator, these non-selling opportunities may be more appealing to you:

Property ManagementThis is a demanding function that requires administrative expertise, strong organizational abilities, and record-keeping skills. Not only will you be asked to achieve the owner’s financial goals, you’ll have to be a superb multi-tasker – performing such day-to-day tasks as building/grounds maintenance, tenant relations, rent collection, and employee management.

Property AppraisalThis is an exacting field involving value estimates for litigation, mortgage financing, expropriation, and domestic issues. Appraisal techniques rely on sophisticated formulae – making a solid knowledge of mathematics essential.

Mortgage FinancingAs a professional in this area, you’ll assist both buyers and sellers in securing satisfactory financial packages for residential and commercial transactions.



Seasoned real estate professionals will tell you that certain talents, qualities and personal traits are crucial to building a successful career.

MathA basic grounding in math fundamentals, with proficiency in multiplication, division, fractions, decimals and percentages. These skills are required when measuring structures and land, as well as appraising property and arranging mortgage financing.

ResearchA practical knowledge of how to locate, read, and understand legal documents involving property ownership.

Organization and PlanningAn ability to organize personal affairs as well as conduct business activity in a logical, efficient manner, e.g., obtaining listings, showing properties, handling offers, and conducting negotiations.

Confidence and PersistenceA confident attitude and firm grasp of personal goals. Real estate sales do not always go smoothly and registrants must routinely deal with set-backs and disappointments, as well as successes.

Problem-SolvingAn ability to address difficulties and arrive at plausible, practical solutions given conflicting interests of parties involved. This attribute is particularly useful in listing and selling activities.

Computer KnowledgeA basic understanding of computer hardware and software. Computers and other electronic devices are mainstays in today’s real estate brokerages.

English Language Comprehension and ProficiencyAn essential skill. Salespeople must understand, draft, and explain real estate agreements, listings, and other related forms. Real estate registrants must ensure that documents are correctly prepared and properly reflect the position of the parties.

Negotiating SkillsA fundamental part of any real estate transaction. Salespeople routinely negotiate on behalf of buyers and sellers to arrive at mutually agreeable terms.

Interview TechniquesA basic understanding of questioning methods. Real estate success often depends on asking the right question at the right time. This skill is particularly valued when helping buyers determine their purchasing needs.

People SkillsAn ability to gain the trust and respect of buyers and sellers. Rapport comes easily to those who enjoy working with people, genuinely take interest in their well-being, and understand needs and wants.

Self DisciplineThe ability to work independently to get the job done. Real estate sales demands self-motivation, discipline, and personal commitment.

My personal skills should be…


Salespeople in Ontario must be employed by a registered real estate brokerage. Compensation plans and the level of support provided to new Salespeople will vary from brokerage to brokerage. Find out what will work best for your situation by seeking out real estate brokerages and registrants and using their knowledge and advice to help you make good choices. Do your homework and select the brokerage that will do the most to support your career goals.

Look at the big pictureAs a real estate professional, you may earn a six-digit income... or you may work for months or years with limited financial success. In either case, one financial fact is certain: it will take some time, maybe a long time, before you receive your first commission. Regardless of the brokerage that employs you, compensation is usually based on a commission structure – and commission plans can vary, depending on the number of properties sold or leased. Your earnings can also be affected by area, property type, local market conditions, and specific brokerage policies. The income received from a particular transaction is typically subject to the number of brokerages and Salespeople involved in the transaction. For example, if a Salesperson lists and sells a property, the commission is paid to the brokerage that then splits the amount with the Salesperson. Some brokerages pay an extremely high percentage of the total commission to the Salesperson.

What should I do first?

However, that Salesperson(s) typically must pay monthly fees to the brokerage regardless of whether commissions are earned.

Get the help you needEven though compensation plans may be broadly the same across the industry, they do differ – and so do brokerage management styles. It’s a good idea to survey a number of brokerages to find the one that best suits and supports your career goals. Predicting your income can also be difficult. Real estate earnings are typically related to personal sales ability and people skills. You’ll probably need several years of experience before you can accurately predict your income levels. But for starters, it’s a good idea to seek out the advice and counsel of experienced real estate professionals.

Assess your personal financesIt may take quite a while to receive your first commission. The time lag may be three/four months or more (longer for commercial properties) before you get paid. First, a property is listed, and goes through the process of being shown to interested buyers.Then, an agreement is drafted, fulfilling any conditions and notifications. Finally, a closing date is set – typically 30 to 60 days later. Your commission is paid on closing. Any business venture takes a while to get off the ground. The same will likely be true of your real estate career. As a consequence, it’s only prudent that you have sufficient capital available to be financially independent for at least six months. The best advice: your personal goals may take a while to reach and you can’t predict the future with total accuracy, so be financially prepared before you embark on your career.


Set a budgetSet a realistic budget to get you through your educational and early career-building process. Base it on these typical areas of expense. There are course costs, of course – but they are just part of the total investment required for Salesperson registration in Ontario. Remember that you will not be able to earn any commission until you are registered with the Real Estate Council of Ontario. Time delays must be considered. Once you complete the Pre-registration courses and obtain Salesperson registration, several months may pass before commissions are earned and several more before they are actually received. In addition, you must pay RECO a two-year Salesperson registration fee along with the mandatory insurance program premium. If you do not remit the required fees, there is no monetary penalty – you just won’t get registered. Approximately 85 per cent of registrants in Ontario are members of local real estate boards. Real estate board dues vary

throughout the province. Salespeople may also be responsible for other board services fees. Contact the local board for more information. All Ontario boards are listed on www.orea.com In addition, brokerages may hold Salespeople accountable for advertising and/or other costs associated with the real estate profession, such as telephone calls, paging services, administration fees relating to listings and transactions, and photocopy/fax services. So here is another reminder to investigate the costs and services you will encounter at different real estate brokerages. There are other expenses to consider as well, including vehicle operation and maintenance, personal attire, computer equipment, and electronic communication devices.

Make sound financial decisions and invest in yourselfEvery profession has initial and ongoing fees – real estate is no exception. Budget wisely and carefully as you start your career and at every step along the way. Invest a portion of every dollar you earn in ongoing professional requirements, continuing education, and other career enhancements.



Your Steps to Professional Success

How do I become a registered Salesperson? 22 The Salesperson Registration Education Program 22Education Timeline 22

The Salesperson Registration Education Program 23

Real Estate as a Professional Career 24Land Structures and Real Estate Trading 24The Real Estate Transaction – General 24The Residential Real Estate Transaction 24The Commercial Real Estate Transaction 24The Articling Segment 24

The Broker Registration Education Program 25

How do I become a Real Estate Broker? 26Becoming a Broker 26

How do I enrol in the OREA Real Estate College? 27Required Materials 27Course Completion 27Other Costs 28

What are my learning options? 29Classroom 29e-Learning 29Correspondence 30Course Textbooks 30My Portfolio 31


To be registered as a Salesperson with the Real Estate Council of Ontario and ‘trade’ in real estate in Ontario you must:

• BearesidentofCanada• Beatleast18yearsofage• CompletethePre-registrationcourses• Obtainemploymentwitharegistered brokerage and make application for registration within 12 months of successfully completing the last Pre- registration Segment course• Applyforregistrationwithinoneyearof successfully completing your last Pre-registration course (The Real Estate Transaction General and The Residential Real Estate Transaction or The Commercial Real Estate Transaction)• Completeandsubmittheformsapproved by the Registrar under REBBA 2002 accompanied by the relevant fee.

The Salesperson Registration Education ProgramThe Salesperson Registration Education Program begins with the Pre-registration Segment which must be completed within 18 months of the start date of the first course (Real Estate as a Professional Career). Courses in this segment must be completed sequentially and students must pass an examination with a mark of not less than 75 per cent at the end of each course in order to proceed to the next course. Following completion of the Pre-registration Segment, students have up to 12 months to obtain employment with a brokerage and registration as a Salesperson with the Real Estate Council of Ontario. The final part of the program is the Articling Segment, a mandatory 24-month period following the student’s registration as a Salesperson.

How do I become a Registered Salesperson?

Initial Salesperson Registration

Renewal ofSalesperson Registration

Real Estate as a Professional Career

Land, Structures and Real Estate Trading

The Real Estate Transaction – General

Pre-registrationSegment

Articling Segment

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Pre-registration Segment Articling SegmentRECO Approval

Education Timelinein Months


The Salesperson Registration Education Program

Initial Salesperson Registration

Renewal ofSalesperson Registration





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Admission RequirementsApplicants must either:

• HaveanOntarioSecondarySchoolDiplomaorequivalent

or •Beatleast18yearsofageandpassaqualify-

ing test approved by the Superintendent of Private Career Colleges, Ministry of Training, Colleges and Universities

Course RequirementsThe educational requirements of your path to becoming eligible to be registered as a Salesperson with RECO follow two logical learning steps:

Step 1: Pre-registration SegmentAchieving your eligibility for your initial registration as a Salesperson.

Step 2: Articling SegmentA two-year Articling Segment during which you complete the requirements for renewal of your registration as a Salesperson.

The Learning Path

**

*Course not taken in the Pre-registration Segment


Real Estate as a Professional Career Real Estate as a Professional Career is offered in the classroom (a 35 hour course)and by correspondence or e-Learning,allowing students to proceed independently.This course introduces basic real estateconcepts, details the Salesperson/Brokerrelationship, explains market dynamics,and includes various mathematicalcalculations. Land, Structures and Real Estate Trading This course examines detailed statutory requirements, accepted trading practices, and technical requirements concerning representation relationships. This program is available through correspondence, e-Learning and classroom instruction(a 60 hour course).

The Real Estate Transaction – GeneralThe Residential Real Estate Transaction The Commercial Real Estate TransactionThese courses will provide a detailed overview of the real estate transaction, from listing agreement through to the final sale. Students in the Pre-registration segment of the program must complete The Real Estate Transaction – General and either The Residential Real Estate Transaction or The Commercial Real Estate Transaction. The remaining course must be taken during the Articling segment. The e-Learning and correspondence study methods are available for The Real Estate

Transaction – General only. The e-Learning/correspondence portions are followed by 40 hours of classroom work. Students may also select an 80-hour class that includes both the Real Estate Transaction – General and The Residential Real Estate Transaction or The Commercial Real Estate Transaction.

The Articling Segment Once a new graduate registers with RECO as a Salesperson, the two-year articling segment begins. During this stage, three additional courses must be completed prior to renewal of Salesperson registration, namely Real Property Law, the Residential Real Estate Transaction or The Commercial Real Estate Transaction (the one not taken during the Pre-registration Segment) and one elective course (see pages 43-46 for elective course options and descriptions).


The Broker Registration Education Program

The Learning Path

Admission RequirementsCompletion of the Salesperson Registration Education Program (Pre-registration and Articling segments)

Course RequirementsStep 1: Completion of one additional elective course (Individuals who have not taken Phase 3 Commercial must take The Commercial Real Estate Transaction as the additional elective course).

Step 2: Completion of the Real Estate Broker Course.


How do I become a Real Estate Broker?

Becoming a BrokerA Salesperson can achieve Broker registration by successfully completing one additional elective followed by the Real Estate Broker Course. Many Salespeople pursue Broker qualification without becoming Broker/Owners. Instead, these individuals remain with their particular employing brokerages and are legally recognized as Brokers but not necessarily as a Broker of Record.

Broker RequirementsTo become registered as a Broker, you must:• Beatleast18yearsofage• Makeapplicationontheprescribed form, provide supporting documentation as required, and pay appropriate fees• BearesidentofCanada• Havebeenregisteredandactively employed as a Salesperson for at least two years during the immediately preceding three years, or have equivalent experience• Havecompletedcoursesofstudyand passed written examinations all as approved by the Registrar with a pass mark of not less than 75 per cent. The final examination must have been completed within the one year preceding application

A brokerage is authorized to trade in real estate on behalf of another person. In turn, the brokerage as an owner employs or appoints Salespeople to perform day-to-day listing/selling functions in the trading process. Such activities are always performed under the guidance and direction of the Broker of Record. The Broker of Record is responsible for ensuring that the brokerage complies with the Real Estate and Business Brokers Act, 2002 (REBBA 2002), and its regulations. Responsibilities also include maintaining the brokerage trust account and reviewing and signing trade record sheets. Brokerages have three ownership options when forming a brokerage: Sole Proprietorship, Partnership, or Corporation. The ultimate choice typically rests on individual circumstances including tax considerations and personal goals. Brokerages may also have branch offices, which are regulated under provisions of the Real Estate and Business Brokers Act, 2002 (REBBA 2002).


How do I enrol in the OREA Real Estate College?

Once admission requirements are met, students are required to sign an Enrolment Contract with the OREA Real Estate College. Subsequently, enrolments for Real Estate as a Professional Career and all subsequent courses may be done online, by telephone, and in person at the OREA Real Estate College in Toronto (99 Duncan Mill Road, Don Mills, Ontario). Course schedules may be viewed at www.orea.com The course schedules appear at the end of the page for each course listed. Upon enrolment in a course, access to an e-Book and PDF of the course is provided. Students may locate electronic versions of the course materials in My Portfolio under Course Centre-Course Resources. An e-Book is an electronic textbook similar to the online version of the course. A PDF is an electronic reproduction of the course textbook.

Required MaterialsCourse TextbookFees include a course textbook for all courses except those taken online. e-Learning students may purchase a course textbook for an additional fee of $70 + HST.

HP 10BII Financial Calculator (recommended)Financial calculations are essential in the world of listing and selling properties. The Hewlett Packard Business 10BII is highly recommended for students, having gained wide acceptance among real estate professionals in Canada and the United States. This calculator provides versatility, a wide scope of business functions [primarily regarding cash flows and time value of money calculations], the ability to analyse regular and irregular cash flows, present values, internal rates of return, and adaptability to Canadian mortgage calculations. All financial calculations in course textbooks are illustrated using HP 10BII keystrokes. Students with other calculators must ensure that necessary functions can be performed and that course procedures, keystrokes, and examples are correctly modified to suit the calculator being used.

Course CompletionClassroom students must select an examination date and location of their choice at the time of enrolment in the course. The initial examination must be scheduled for a date following completion of the classroom sessions. Classroom students


who attend less than 70 per cent of the classroom hours will not be eligible to write an examination and will be required to repeat the course. e-Learning and correspondence students must select an examination date and location of their choice at the time of enrolment in the course. The initial examination may not be scheduled for the Saturday immediately following the start date of the course. A final mark of 75 per cent (minimum) is required to pass a course. Students are granted two opportunities to write an examination. If a failing grade is achieved on the first attempt, students must pay a $50 fee to schedule the rewrite. If a failing grade is achieved on the second attempt, the course must be repeated. The Pre-registration segment courses must be completed within 18 months from the original course start date of Real Estate as a Professional Career (including examination rewrite, if necessary). No extensions are granted. All course enrolments are on a first come, first served basis. Changes in schedule may result from unforeseen circumstances. See page 50 for College Program Standards, which detail all rules, regulations, and policies. Course enrolments are not transferable to other OREA Real Estate College students. Classes are added throughout the year based upon demand.

Other Costs Parking charges may be incurred at non-OREA facilities and are the responsibility of the student.


While some adult students prefer a classroom environment, others seek the world of self-directed learning. Students can create their own learning strategy. For example, Real Estate as a Professional Career and Land, Structures and Real Estate Trading can be taken anywhere via e-Learning or by correspondence. Subsequent courses, given more complex subject matter, typically include both self-directed and classroom components or full classroom participation. RECO and the OREA Real Estate College are committed to the expansion of self-directed learning wherever feasible to advance learning by personal design.

ClassroomInstructors use a combination of teaching methods with particular emphasis on case studies and problem-solving exercises. Instructors are experienced practitioners in

real estate and related disciplines and meet strict standards established by the College. The classroom promotes discussion between students and with knowledgeable instructors, and gives students the opportunity to clarify, expand, and discuss course materials and

What are my learning options?

issues. Classroom instruction is mandatory for selected courses or portions thereof, while optional in others. To effectively engage in group discussions and maximize learning,students are strongly encouraged to attend 100 per cent of scheduled classroom hours.

e-LearningThis approach to self-directed study is highly interactive. Students must have some computer knowledge and feel comfortable with the hardware and software

required to take an e-Learning course. Internet access is required (high speed is highly recommended) along with a word processing program. e-Learning demands self-discipline and good time management. This approach lacks the degree of social interaction found in the classroom. Course content is also delivered differently. Students don’t simply read or listen to an instructor.


Students define the learning experience, explore interactive links, and work through material by clicking, selecting, and entering. Assistance is available through the Instructor Support Line. Education forums are accessible by e-Learning students directly from their e-Learning course. e-Learning courses feature mechanisms for self-testing and guides students through the course unit by unit. In addition to exercises, students must complete assignments. Examinations are held at Examination Centres. See page 54 for a listing of Examination Centres. e-Learning system requirements are: High speed Internet connection

Hardware (Minimum)• PentiumIV(PC)orMacIntelprocessor• 512MBofRAMand1.5GBminimum free hard disk space• Screenresolution:highcolour,1024x768• Compatibleprinter Software (Minimum)• WindowsXPServicePack2orhigheror MacOSX(upto10.4)• InternetExplorer6orhigher• AdobeAcrobatReaderVersion7.0or higher• FlashPlayerPlugin

CorrespondenceStudents review course material and complete exercises and assignments in the comfort of their home or office. Commitment and self-motivation are essential

for this approach to learning. If needed, Education forums and the Instructor Support Line are available for assistance. Scheduled examinations are held at Examination Centres.

Course TextbooksThe integrated reference/textbook approach is well suited to adult learners. Students readily gain knowledge through guided research, true-to-life case studies, and active learning exercises. The fully integrated course textbooks include required readings, practical hands-on exercises, and review assignments. This format ensures that participants encounter scenarios relevant to today’s real estate marketplace. Students draft and correct agreements of purchase and sale, calculate investment property cash flows and rates of return, analyse situations involving property defects, and resolve legal/ethical issues encountered in real estate transactions. Learning consolidation, reviews, and exercises confirm ongoing comprehension. Detailed answers are located in the “Solutions” section of the appendix for self-evaluation and assessing learning progress.


Course content is updated to reflect the latest changes in legislation, legal matters, and market practices that impact the real estate profession.

My PortfolioOREA’s online My Portfolio resource centre is your single-source information database for all course administration needs. Students are issued an account when enrolling in their first course. This password-protected account contains all communications from the College on academic and administrative matters including:

• Selectingexaminationdateandlocation• Viewingfinalcoursegradesand accessing and printing transcripts• Updatingcontactinformation• Printingofficialtaxreceipts• Viewinghistoryofcoursescompleted• Receivingconfirmationofcourse enrolments

• Initiatingtransfersbetweencoursesand/ or methods of delivery• Receivingup-to-dateCollege communications• Accessingcourseresourcesincluding Education Forums, e-Books and PDFs.

My Portfolio puts you in control of your learningpath.Visitwww.orea.com

4



Course Descriptions

Introduction 35

Pre-registration Courses 37Real Estate as a Professional Career 37Land Structures and Real Estate Trading 38The Real Estate Transaction – General 39The Residential Real Estate Transaction 41The Commercial Real Estate Transaction 41

Articling Courses 42Real Property Law 42Principles of Appraisal 43Principles of Mortgage Financing 44Real Estate Investment Analysis 45Principles of Property Management 46

The Broker Course 47Real Estate Broker Course 47

My OREA CommunityBe a Part of OREA’s CommunityMy OREA Community provides an interactive environment for students and registrants to network with each other and participate in discussions regarding course curriculum. OREA Real Estate College course moderators actively monitor the site to assist in responding to queries.

This dynamic website will be constantly changing and evolving so be sure to check back often to see what’s new.

Login to My Portfolio at www.orea.com today to experience what My OREA Community has to offer.

Course Schedules Available OnlineRegistration Education CoursesChoose from a variety of dates, locations and methods of course delivery that suits your needs and your schedule. Enrolment is available either online or by calling the OREA Real Estate College at 416-391-6732 or 1-866-411-6732.

Visit www.orea.com, click on “Become a Real Estate Professional” and select your

course to view the schedule.

My OREA CommunityBe a Part of OREA’s CommunityMy OREA Community provides an interactive environment for students and registrants to network with each other and participate in discussions regarding course curriculum. OREA Real Estate College course moderators actively monitor the site to assist in responding to queries.This dynamic website will be constantly changing and evolving so be sure to check back often to see what’s new. Login to My Portfolio at www.orea.com today to experience what My OREA Community has to offer.

Course Schedules Available OnlineRegistration Education CoursesChoose from a variety of dates, locations and methods of course delivery that suits your needs and your schedule. Visit www.orea.com, click on “Become a Real Estate Professional” and select your course to view the schedule.


Introduction

Your career – your choicesCourses are offered in three learning formats – correspondence, e-Learning and classroom – so you can choose the format that best suits your learning style. Some students prefer the formality of a classroom environment; others are more comfortable with self-directed learning. In this section of your Handbook, you’ll find all the information you need to make the most appropriate course selections as you plot your personal learning path to real estate professionalism and success.


Articling Segment

1 2The Two-Step Learning PathYour development as a registered real estate professional is a two-step process. In Step 1, you will take the Pre-registration courses required to become eligible to make application to RECO for your initial registration as a Salesperson. In Step 2, you will complete the courses during your two-year Articling segment that are required for the renewal of your registration as a Salesperson.

Legend

Correspondence

e-Learning

Classroom

Pre-registration Segment

Articling Segment

Broker Segment

1

2

3

1

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3

1

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3

Exam ©

Copyright ©2012Ontario Real Estate AssociationISBN 978-1-894726-83-2

PC and Mac compatibleTechnical Support: [email protected]

The Salesperson RegistrationEducation Program

The Broker RegistrationEducation Program

Need help with your exams?

real e-store

The ExamTutor © CD contains practice exams for the Pre-registration, Articling and Broker courses to help you prepare to pass your examination.

Convenient access from any laptop or personal computer.

Designed to test your comprehension of the curriculum you have

covered and assist with preparation for the final exams..

ExamTutor ©

To purchase, contact the OREA Real Estate College at 416-391-6732 or toll free 1-866-411-OREA (6732) or visit the at www.oreacollegestore.com

Articling & Broker Courses includes Real Property Law; Real Estate Investment Analysis; Principles of Appraisal; Principles of Mortgage Financing; Principles of Property Management; and The Real Estate Broker Course.

Pre-registration Courses includes Real Estate as a Professional Career; Land, Structures and Real Estate Trading; The Real Estate Transaction – General; The Residential Real Estate Transaction; and The Commercial Real Estate Transaction.

e-store


Course completionCorrespondence e-Learning or 35 hours of classroom instruction

PRE-REGISTRATION COURSES


1

This course will provide a general overview of the real estate profession and how it interacts with other elements of our society. The student will be provided with an overview of how the real estate profession works and what skills will be required. The importance of economics, demographics and geography on real estate values will be explored. Consumer buying habits and marketing methods will be explored, along with a basic overview of mathematics.

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Course completionCorrespondence e-Learning or 60 hours of classroom instructionPrerequisiteSuccessful completion of Real Estate as a Professional Career

This course will provide an overview of how land and property is registered and how ownership occurs. Municipal planning and land use regulations will be examined. The key elements in the construction of homes and buildings will be identified. The process of determining the value of a property will be reviewed. The process of trading in real estate will be reviewed, including appropriate legislation (REBBA 2002), as well as the concept of representation relationships.

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The Real Estate Transaction – GeneralThe Residential Real Estate Transaction ORThe Commercial Real Estate Transaction


Course completionIn the Pre-registration segment, students must take The Real Estate Transaction – General, plus either The Residential Real Estate Transaction or The Commercial Real Estate Transaction. The Real Estate Transaction – General may be taken by e-Learning or correspondence* followed by either The Residential Real Estate Transaction or The Commercial Real Estate Transaction to be taken in class. Students may choose to take The Real Estate Transaction – General and either the Residential Real Estate Transaction or The Commercial Real Estate Transaction entirely in an 80-hour classroom session.PrerequisiteSuccessful completion of Land, Structures and Real Estate Trading

This course will provide a detailed overview of the real estate transaction, from listing agreement through to the final sale. Both residential and commercial courses will be separated into two components:

• TheRealEstateTransaction–General• TheResidentialRealEstateTransaction OR The Commercial Real Estate Transaction

The General component of the course will be the same for both Residential and Commercial and will be taken in the Pre-registration segment of the Program.

Students must complete the General component and either the Residential Real Estate Transaction or the Commercial Real Estate Transaction prior to being eligible for Salesperson registration. Students will then complete the remaining course as a mandatory part of the Articling segment.

* Students who enrol for the e-Learning or correspondence segment must, at the same time, select and enrol for the subsequent 40-hour classroom session to take place following the suggested course completion date (approximately 30 days as noted on the course schedule on the College website).


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Each study guide includes over 1,000 practice exercises (no course repeats).

• 500+MultipleChoiceQuestions• 300+RapidRecallFlipScreens• 200+CluesPackedWithinMultipleCrosswords• PowerfulTipsForExamPreparation

Want To Bust Through The Study Maze?

points you in the right direction.


OR

Course completionPre-registration segment:40 hours of classroom instruction

Articling segment: 40 hours of classroom instruction (Course not taken in the Pre-registration segment)

Course completionPre-registration segment:40 hours of classroom instruction

Articling segment: 40 hours of classroom instruction (Course not taken in the Pre-registration segment)




ARTICLING COURSES

Students who have completed The Real Estate Transaction – General and one of The Residential Real Estate Transaction or The Commercial Real Estate Transaction must complete the remaining course as a mandatory part of the Articling segment.

1

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3

1

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3

1

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1

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Each study guide includes over 1,000 practice exercises (no course repeats).

• 500+MultipleChoiceQuestions• 300+RapidRecallFlipScreens• 200+CluesPackedWithinMultipleCrosswords• PowerfulTipsForExamPreparation

Want To Bust Through The Study Maze?

points you in the right direction.

www.passit.ca* Time limited, single-user access.

Taxes extra. See website for details. Call OREA at 1-866-411-6732 to Order

$24.99per course* plus taxes

From

�e Residential Real Estate Transaction and �e Commercial Real Estate Transaction courses focus on the trading of different types of property, and include current trends and issues that impact residential and commercial real estate, respectively.


Real Property Law

ARTICLING COURSES 2

Course completionCorrespondence e-Learningor 40 hours of classroom instruction

This course provides students with a clear understanding of legal issues concerning property ownership and in-depth knowledge of a number of legislative acts. Real Property Law is a mandatory Articling course.

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ARTICLING COURSES

Principles of Appraisal

Electives


This course provides an understanding of valuation theory and is designed to develop registrants’ ability to evaluate property in the course of trading activities.

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ARTICLING COURSES

Electives

Principles of Mortgage Financing

This course explores the mortgage market and provides hands-on exposure to forms, applications and mortgage calculations.


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Real Estate Investment Analysis

ARTICLING COURSES

Electives

Students are provided with an understanding of the increasingly sophisticated demands of commercial real estate clients and investors, who demand complex calculations for investment comparisons and valuations. During the course, students are exposed to analytical methodology of comparing cash flows and returns in order to determine the present value of future benefits.


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ARTICLING COURSES

Principles of Property Management

Electives


This course provides students with a comprehension of issues and day to day responsibilities faced by property managers.

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Real Estate Broker Course

BROKER COURSE 3

Course completion60 hours of classroom instruction or initial study by correspondence or e-Learning plus 40 hours of classroom instruction

This is an optional course registrants must take should they wish to pursue registration as a Broker. The registrant must have completed the Articling Segment plus one additional elective prior to taking this course. The course covers the establishment, operation and management of a real estate brokerage. The Real Estate Broker Course must be completed within 12 months of the original e-Learning or correspondence start date. If necessary, re-write examinations must be completed within one year of the original examination date. No extensions are granted.

Effective April 1, 2009, registrants who have not completed Phase 3 Commercial must complete The Commercial Real Estate Transaction as the additional elective requirement.

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Note:



College Program Standards 50College Instructor Standards 58Examination Challenge Program 60




1. Payment of College FeesFees are payable to OREAby credit card (VISA, MasterCard, American Express), certified cheque, or money order. Online and telephone payments must be made by credit card. Debit/cash payments are accepted for payments made in person. In the event a cheque accompanying an application is returned NSF, payment (including the administration fee) must be made by credit card, certified cheque/bank draft, or debit card/cash in person. Students are advised that in the event that a credit card transaction results in a chargeback to the College, payment (including the administration fee) must be made by certified cheque, bank draft or debit card/cash in person. Payment by credit card must be made by the person whose name and signature appear on the card. (Third partyauthorization is required, if applicable).

2. My Portfolio AccountAll students are issued a My Portfolio account when enrolling in their first course. The College uses this to communicate with students on academic and administrative matters. My Portfolio is your personal, confidential section of the OREA website that contains information about your courses. It’s the only way to get:

• Confirmationofenrolment/welcome letter for any course you take• Accesstoonlinecourses• Confirmationofyourexamlocationand date

• Marksandtranscriptsuponcourse completion• Taxreceipts• Anyotherofficialdocuments

How to Access:Go to www.orea.com and click the My Portfolio button to access the login page.1. Enter Student ID/Card No:Enter either the eight-digit number assigned upon enrolment in Real Estate as a Professional Career or the 16-digit OREA Card number received on a yellow or blue card.2. Enter Password:First time users will be required to reset their password.

The first time you logon to My Portfolio you will see the OREA Real Estate College Declaration which includes College Program


Standards. Read completely, and click to Accept or Decline.

Inbox: Logging on to My Portfolio will always take you to the inbox, where any new mail from OREA Real Estate College is stored. Click on any item you want to read.

Document Centre: Contains every official document about a course. From here you can print:

• PaymentreceiptsforOREAcourses• Confirmationofenrolmentletters• Transcripts• TaxReceipts• DocumentsrequestedfromOREA

Course Centre – Current Courses: Lists courses in which you are currently enrolled. Access a course by clicking the underlined hyperlink in the course description.

Completed Courses: Lists courses that you have completed along with applicable credits and/or marks.

Course Resources: Upon enrolment in a course students are provided access to both an e-Book and PDF of the course. A PDF is a reproduction of the course textbook. The e-Book is an electronic textbook similar to the online version of the course. These electronic versions of the course material may be located in My Portfolio under Course Centre.

Course Updates: Course curriculum is updated on an ongoing basis to ensure students have access to course materials that are current and accurate. Students are able to access updates for the course in which they are enrolled.

Course Suggestions: The OREA Real Estate College welcomes feedback from students. Questions relating to curriculum content

may be submitted and will be reviewed by curriculum staff.

Shipping Status: When a product is ordered from the College, students are provided with the ability to track the status of their order through Shipment Tracking Details. A tracking number and contact information are provided to assist in determining the location of the shipment.

My Info: Shows you your personal information. Information can be updated simply by clicking on the Edit link at the end of the line that you want to change.

My Portfolio: Check it frequently. It’s where you keep track of your success.

3. Classroom SizeEnrolment in classroom courses is limited and is available on a first come, first served basis. If demand for a session exceeds established classroom size limits, additional courses may be offered to accommodate students.

4. Demand for Classroom Courses – the Wait-list ProcessIf the student attempts to enrol in a specific course and it is full, the student must enrol in another available course. Only then will the student be permitted to be wait-listed for the requested course. If it becomes available, a communication will be sent to the student’s My Portfolio account and if the student wishes to do so, a transfer into the wait-listed course will take place. Additional courses are added continually throughout the year to accommodate wait-listed students and market demand. However, there is no guarantee that wait-list requests will be accommodated. For maximum flexibility, students may avail themselves of our self-study learning options.


5. AttendanceClassroom CoursesTo effectively engage in group discussions and maximize learning, students are strongly encouraged to attend 100 per cent of sched-uled classroom hours.

6. Student Initiated Course TransfersStudents currently enrolled in an e-Learning, correspondence or classroom course who wish to transfer to a later session must communicate this request to the College up to the end of the business day prior to the start date of the course in which the student is currently enrolled. Before requesting a transfer, check the College website at www.orea.com for information regarding course offerings. A course transfer is subject to a $50 administration fee.

7. Assistance With Course Content – Instructor Support LineStudents who have questions or require clarification pertaining to course content only, may call the Instructor Support Line at 1-866-444-5557, Monday-Friday, 9:30am-4pm. Due to the volume of calls, students are encouraged to investigate other sources of help such as the website Education Forums.

8. Website Education ForumsThe College encourages the use of Education Forums as a learning tool. The forums may be accessed by logging in to My Portfolio using your student ID and password. Once logged in, click on the My OREA Community link. This will provide a link to the Forum. Click on the course you are currently taking to participate in the discussions. You will be required to accept the terms and conditions of the forum in order to actively participate in the forum

discussions. Education Forums are free and available to all students and instructors. The Forums Moderator reserves the right to edit posted questions on courses and in some cases delete questions that are not in the spirit for which the forum is intended. 9. ExaminationsAll Registration Education course examinations are of three hours duration and consist of multiple choice questions reflecting course exercises, assignments and required readings. All examinations are closed book. Students are granted two opportunities to write an examination. See paragraph 13 for additional information. Students are required to read and abide by all applicable College Program Standards, must abide by the test administrators’ verbal instructions, and by the acknowledgement printed on each examination book. Areas of academic dishonesty such as plagiarism, cheating, impersonation, and coaching another student during the examination, will not be tolerated. Any violation of the examination rules will result, at the very minimum, in a student’s disqualification from the examination and potentially from the College courses and examinations for a minimum period of one year. Students who are subject to expulsion for any reason will be notified in writing. The notification will describe the basis for expulsion and the effective date. Expelled students who dispute the facts of the expulsion and wish to appeal may do so according to the College’s Student Complaint Procedure Guide. Examinations for all students take place at Examination Centres (see page 54). A student who does not write the scheduled examination will be given a grade of “0” and the course transcript will reflect Fail. Students who do not write the initially scheduled examination or students who do not pass this exam will be given one final opportunity to write the examination.


10. Scheduling ExaminationsClassroom StudentsStudents may select an examination date and location of their choice at the time of enrolment in the course. The initial examination must be scheduled for a date following completion of the classroom session.

e-Learning and Correspondence StudentsStudents may select an examination date and location of their choice at the time of enrolment in the course. The initial examination may not be scheduled for the Saturday immediately following the start date of the course.

11. Rescheduling Examinations• Followinginitialenrolment,student-

initiated requests to reschedule the examination will be subject to a $50 non-refundable administration fee for each request.

• Requeststorescheduleanexaminationmust be made a minimum of 10 calendar days before the desired examination date.

• StudentsmaycontacttheCollegeandreschedule an examination up to the close of business 10 calendar days before the currently scheduled examination date.

• Astudentwhodoesnotwritetheirscheduled examination will be given a grade of “0”, the course transcript will reflect Fail and an examination attempt will be lost.

12. Examination Room ProceduresStudents who arrive past the examination start time will not be permitted to write the examination and will forfeit their examination attempt.

Required identificationStudents are reminded that government-

issued photo identification (e.g., driver’s licence and/or passport) is required for admission to the examination. The identification must be current and valid, contain your photo, be issued by a government agency, and the name on the identification must be identical to the name provided in the Student Information section of the Student Enrolment Contract. The College and/or the testing venue is not responsible for stolen, lost or damaged property.

Video SurveillanceFor test administration purposes, a closed circuit camera/video recording will be in operation only during the time of an exam. Students are advised of examination room monitoring by way of video surveillance notices, which are posted in designated classroom/examination rooms. Please direct questions or concerns about the privacy compliance practices of the Ontario Real Estate Association to [email protected]

Approved and prohibited itemsYou may use a financial calculator that does not permit the saving of text material. However, wireless electronic devices such as hand held computers, cellular telephones, dictionaries, translators, personal data assistants, pagers, headsets, any remote communication or photographic device and other electronic organizers that permit the saving of text material, are prohibited. The use of course textbooks or loose leaf papers of any kind is prohibited. Prohibited items listed above, if brought into the examination room, constitutes a breach of examination protocol. In the event such prohibited items are found by the invigilator, he/she is authorized to remove such items. Students who choose not to write the examination in these circumstances will be awarded a grade of “0”. A final determination of the status of the completed examination will be made by


•Windsor

•Sault Ste Marie

•Sarnia • London

•Thunder Bay

•Niagara Falls•StoneyCreek•St. Catharines• Hamilton

••Oakville•Mississauga

• Brampton • Oshawa• Belleville

• Peterborough

• Bancroft• Bracebridge

• Huntsville

• North Bay• Sudbury

• Parry Sound

• Kingston

• Brockville

• Ottawa

• Cornwall

Toronto

• Owen Sound

• Barrie

• Orillia

• Brantford

• KitchenerWaterloo

• New Liskeard

• Kirkland Lake

• Timmins

• Kenora • Dryden Examination and Classroom Centres in OntarioExamination and Classroom CentreClassroom CentreExamination Centre

•••

•Pembroke

the College dependent upon the nature of the breach of examination procedures.

13. General Rules for Examinations1. An examination represents 100 per cent of a final mark.2. A final mark of 75 per cent (minimum) must be achieved to successfully complete each course.3. Students are granted two opportunities to write an examination. An examination attempt will be counted where a student writes an examination or fails to attend on a scheduled examination date. If a failing grade is received on the second attempt or a student fails to attend a scheduled second examination attempt, the entire course must be repeated.4. Students are required to select a preferred Examination Centre upon enrolment for the course (see below and www.orea.com)5. All examinations are based on a time limit of three hours.6. Students who arrive late are not permitted to write an examination. The student automatically forfeits one of the two opportunities permitted to write the examination.7. Students must present photo identification, such as a driver’s licence or passport, and their name must be included on the e-roster to write an examination. There are no exceptions.8. Examination dates may be cancelled by the College and/or Examination Centres may be closed without notice due to unforeseen circumstances. This will not count as a missed examination opportunity.

9. The use of battery-powered portable or laptop computers are only permitted in the classroom for the duration of the course, but prohibited during the examination.10. The examination booklet must remain intact. The staple must not be removed from the examination.11. Completed examinations are the sole property of the College.

14. Examination CentresExams are held every Saturday at the following Examination Centres across Ontario:

BarrieBramptonCannifton (Belleville)DrydenHamiltonKenoraKingstonKirkland LakeKitchenerLondonNew LiskeardNorth BayOakvilleOttawaPeterboroughSault Ste. MarieSudburyThunder BayTimminsToronto – Don Mills & York UniversityWindsor

• • London •Niagara Falls•StoneyCreek•St. Catharines• Hamilton

••Oakville•Mississauga

• Brampton • Oshawa• Belleville

• Peterborough

• Bancroft• Bracebridge

• Huntsville

• North Bay• Sudbury

• Parry Sound

• Kingston

• Brockville

• Ottawa

• Cornwall

Toronto

• Owen Sound

• Barrie

• Orillia

• Brantford

• KitchenerWaterloo

• New Liskeard

• Kirkland Lake

• Timmins

•Pembroke


17. Marks/Transcripts/Examination Feedback Examination results are processed in sequence and cannot be rushed to facilitate enrolment in another course. Allow approximately one week to process and post the mark. Transcripts are posted online and will be accessible by the student through his/her My Portfolio account.Visitwww.orea.com Marks will not be provided by telephone or by fax. Transcripts will not be sent to a third party unless the student’s written authorization and mailing instructions have been received by the College. In addition to the final mark, students will receive feedback listing topic areas that were answered incorrectly on the examination. This will be provided to all students for question(s) answered incorrectly regardless of the final mark awarded for the course.

18. Examination Re-writesA student is granted two opportunities to write an examination. If the minimum mark of 75 per cent is not achieved on the first examination attempt, an examination re-write date may be requested and scheduled. A request for a re-write examination date along with the desired Examination Centre location must be made at least 10 calendar days before the examination date. There is a $50 non-refundable charge to re-write an examination. If a student fails a re-write examination, the entire course must be repeated.

19. Accommodating a Special NeedStudents having a disability (as defined in the Ontario Human Rights Code) that would prevent them from completing a course or taking examinations under standard conditions may request special accommodations and arrangements. Any such request will be considered on a case-by-case basis, with a view to providing equal opportunity for performance and to meet the student’s disability-related needs. Students requesting accommodation on the basis of disability will be required to have their regulated health professional complete the Student Request For Accommodation of a Special Need Form. The form must be completed at the time of enrolment in a course and must be submitted promptly to the Assistant Director, Regulatory & Faculty Services, OREA Real Estate College, 99 Duncan Mill Road, Don Mills, Ontario, M3B 1Z2. The form is available on the College website, www.orea.com, under Becoming a Real Estate Professional – Things You Need to Know. Students may also contact the College at (416) 391-6732 or 1-866-411-6732 and a copy of the form will be forwarded by fax or e-mail. All information provided will be kept confidential and used only for the purpose of facilitating accommodation. 20. Missed Examination/Missed Classroom Time Due to Health ReasonsA student who fails to attend an examination because of personal health reasons may make a request to the OREA Real Estate College to be given an opportunity to write a makeup examination. The student’s request must be submitted in writing to the OREA Real Estate College along with the required medical documentation in support of the request (see paragraph 22).


21. Inability to Complete the Pre-registration Segment within 18 Months for Health ReasonsA student who is unable to complete all courses in the pre-registration segment within the 18-month timeline because of personal health reasons may make a request to the OREA Real Estate College to be given an opportunity to challenge the examination(s) for course(s) successfully completed (Real Estate as a Professional Career and, if applicable, Land, Structures and Real Estate Trading). The student’s request must be submitted in writing to the OREA Real Estate College along with the required medical documentation in support of the request (see paragraph 22). Requests must be submitted following the 18-month expiry date and will be considered at that time. Where the student is granted the opportunity to challenge the examination(s), the challenge examination(s) must be written within three months of the 18-month expiry date. Requests must be submitted in writing along with the required documentation to the Assistant Director, Regulatory & Faculty Services, OREA Real Estate College, 99 Duncan Mill Road, Don Mills, Ontario, M3B 1Z2

22. Required Medical DocumentationThe required medical documentation can be either an OREA Real Estate College Student Medical Certificate form or an original physician’s letter prepared on the physician’s letterhead. The OREA Real Estate College Student Medical Certificate is available at www.orea.com under Becoming a Real Estate Professional – Things You Need to Know. (If you are unable to view or print the Student Medical Certificate, please visit or send someone on your behalf to the OREA Real Estate College to pick one up or contact the OREA Real Estate College at (416) 391-6732 or 1-866-411-6732 and a copy will be faxed to you.) The student is responsible for ensuring that a physician’s letter or an OREA Real Estate College Student Medical Certificate contains the required information. For example, a physician’s letter or an OREA Real Estate College Student Medical Certificate that simply says “I saw the student on such date” will not be accepted. The original OREA Real Estate College Student Medical Certificate or original physician’s letter must be submitted promptly to the OREA Real Estate College. A fax copy of the original OREA Real Estate College Student Medical Certificate or original physician’s letter may be accepted in advance, but not in place of the original document. A fax of the Student Medical Certificate or physician’s letter will only be accepted if it is faxed from the originator of the document, i.e., it is faxed from the physician’s office directly to the OREA Real Estate College. A Student Medical Certificate or physician’s letter that is faxed by the student to the OREA Real Estate College will not be accepted. The student may instruct the physician’s office to fax the Student Medical Certificate or letter directly to the OREA Real Estate College at the following fax number: (416) 445-2113.


College Instructor Standards

OREA Real Estate College certified instructors are active, experienced registrants in the real estate field and other related disciplines.

Important Note: There may be circumstances where the OREA Real Estate College may have a bona fide need to verify the Student Medical Certificate or physician’s letter. In such circumstances, the OREA Real Estate College will first obtain the consent of the student before contacting the doctor’s office to verify the Student Medical Certificate or letter.

23. Religious HolidaysThe College recognizes that there are many religious holidays. If there is a conflict between a religious holiday and classroom commitment or examination, a student may submit a request for accommodation in advance in writing to the Assistant Director, Regulatory & Faculty Services, OREA Real Estate College, 99 Duncan Mill Road, Don Mills, Ontario, M3B 1Z2.

24. Privacy and Personal InformationPrivacy PolicyThe OREA Real Estate College complies with the federal Personal Information Protection and Electronic Documents Act (PIPEDA). The practices, procedures and policies concerning the collection, use and disclosure of personal information provided to the OREA Real Estate College can be found in the OREA Privacy Policy at www.orea.com


Criteria for College Instructor certification includes:

• Atleast48monthsofworkexperiencein the vocation; or at least 24 months of work experience in the vocation and one of the educational qualifications described below; or at least 24 months of work experience in the vocation and 36 months of teaching experience in the vocation;

• Theinstructormustmeetanyqualifications prescribed by the Real Estate Council of Ontario;

• EducationalRequirements:Abachelor’sdegree from a university in Ontario or another post-secondary institution authorized to grant the degree under the Post-secondary Education Choice and Excellence Act, 2000, or under a special Act of the Assembly that establishes or governs the institution; a bachelor’s degree from a university or other post-secondary institution in another province or territory of Canada or a degree from a university or post-secondary institution outside Canada that is equivalent to an Ontario bachelor’s degree or authorized post-secondary institution as described above; a diploma from a college of applied arts and technology established under an Act of the Assembly or of an equivalent institution outside Ontario; a certificate/diploma from a private career college registered under the Act or a predecessor of the Act or of an equivalent institution outside Ontario; a certificate of qualification issued under the Trades Qualification and Apprenticeship Act or the Apprenticeship and Certification Act, 1998, or an equivalent certificate issued under legislation of another province or territory of Canada.

• Instructorswhodonotmeettherequirements set out above, but receive special approval by the Superintendent for the purposes of providing instruction at the College provided the Superintendent is of the opinion that the person is

proficient in the vocation or in the subjects in which the person proposes to provide instruction.

• Completedallrequiredforms.• Inaddition,instructorswhofacilitate

articling courses must be active practitioners in their respective fields of expertise, hold a professional certification (lawyer, property manager, mortgage broker, appraiser) and have a minimum of five years experience preceding the date of application.

The College awards the Real Estate Instructor (REI) designation in recognition of instructor excellence. To ensure that the highest instruction standards are maintained,College representatives visit classrooms regularly to provide instructors with ongoing support and feedback.

TutoringThe College does not provide tutoring services or referrals. College instructors are prohibited from accepting payment for tutoring in any course they instruct.

Course EvaluationsStudents will be given an opportunity to evaluate the course and instructor, and provide feedback on various aspects of course delivery. Classroom instructors are not involved in the evaluation process, and comments are treated as confidential.

Compliments and ComplaintsInstructors are required to adhere to professional ethics and the Instructors’ Code of Conduct. Any comments regarding an instructor’s performance or any other aspect of course delivery should be submitted in accordance with the OREA Real Estate College’s Student Complaint Procedure in writing on the prescribed form.


Examination Challenge Program

This Examination Challenge Program is approved by RECO and administered by the OREA Real Estate College. It is designed to assist individuals who may be eligible to pursue the Interprovincial Challenge Examination and/or course-specific examinations. The Interprovincial Challenge Examination tests skills and competencies relating to province-specific content. Challenge examinations may be offered to:

• ExistingSalespeopleandBrokersfrom other Canadian jurisdictions • PreviouslyregisteredSalespersonsand Brokers in the Province of Ontario• PreviouslyregisteredSalespersonsand Brokers from other Canadian jurisdictions• PeopleseekingregistrationinOntario who have recently completed the required educational programming to trade in real estate in another Canadian jurisdiction, but never registered as a Salesperson or Broker in that jurisdiction• MortgageAgents/Brokersregisteredin the Province of Ontario• LawyersfromCanadianjurisdictions• Individualswithspecificcourse equivalencies• SalespersonsorBrokersfromnon- Canadian jurisdictions are eligible for portions of this challenge program

The examination challenge approach provides a consistent method to assess knowledge, while ensuring that individuals demonstrate required skills and competencies using a structured evaluation format.

Course-Specific Challenge ExaminationsThe Registrar, REBBA 2002, has the authority to grant students course credits or examination challenges for any course in The Salesperson Registration Education Program or The Broker Registration Education Program on the basis of an education equivalency. Students wishing to explore this option must make formal application through RECO directly. A student’s entry point in the Program and the Program courses that must be completed, will be determined by the Registrar’s assessment. The Office of the Registrar reviews written requests for assessment of education equivalency for courses and/or examinations leading to initial registration as a Salesperson, renewal of registration as a Salesperson or Broker registration in the Province of Ontario, as received. The assessment takes into account completion of commensurate courses provided through other institutions that specifically correlate to Program course learning outcomes; respective education programs leading to Salesperson or Broker status in jurisdictions outside Ontario; and/or sufficient relevant work experience obtained in fields relating to real estate from lawyers, mortgage agents/brokers, and persons having worked in the


appraisal, commercial and industrial fields. Each application is assessed on an individual basis, and by virtue of the materials provided by the applicant. The Registrar’s decision is final. The applicant may receive a credit for the course without having to attend classes or complete self-directed learning course requirements or write an examination; a challenge of the course examination without having to attend classes or complete self-directed learning course requirements or the request for consideration may be denied. Students awarded a course-specific challenge examination are provided the same examination and must meet the same completion requirements as students involved in the respective education program.

Interprovincial Challenge Examination

Successful completion of the Interprovincial Challenge Examination only fulfils the education requirement required to apply for registration under REBBA 2002; you must still meet all other registration requirements before your registration will be approved. Those coming from other Canadian jurisdictions must apply to RECO for registration within specific timelines. Ensure you consult with the RECO website: www.reco.on.ca for full details on these timing elements, and all registration requirements, prior to contacting the OREA Real Estate College to book your Interprovincial Challenge Examination. The Interprovincial Challenge Examination assesses skills/competencies in regard to province-specific materials. Currently, this examination measures knowledge of relevant sections in Real Estate as a Professional Career, Land Structures and Real Estate Trading, The Real Estate Transaction – General, The Residential Real Estate Transaction, The Commercial Real Estate Transaction and Real Property Law. Policies and course summaries are provided

to assist individuals in reviewing materials and identifying key province-specific topic matter for the challenge. The Interprovincial Challenge Examination assumes that common topics (as recognized by Canadian regulators), and associated skills/competencies are adequately addressed through licensing/registration courses in the originating Canadian jurisdiction. The Interprovincial Challenge Examination is centred on skills/competencies for uncommon, province-specific subject matter, most notably Ontario legislation impacting the trading of real estate and unique regulatory considerations affecting registrants.

Note: All references in this text to interprovincial, provincial, and province-specific are deemed to include territories.

Course MaterialsCourse materials are available free of charge as a PDF to assist eligible individuals in preparing for the exam. As an alternative, course textbooks are available for purchase. A $50 administration fee will be charged to schedule a challenge examination.

Additional InformationDetails concerning eligibility for assessing educational equivalencies and examination challenges may be found on the RECO website at: www.reco.on.ca Or contact:Real Estate Council of Ontario3250 Bloor Street West, East TowerSuite 600 Toronto,ONM8X2X9Telephone: (416) 207-4800Outside Toronto: 1-800-245-6910Fax: (416) 207-4820Email: [email protected]



Where do I get answers to my questions? 64FAQs 65Steps to Enrolment 67 Contacting the OREA Real Estate College 67

The Answers You Need


Where do I get answers to my questions?

You have questions – the College wants you to have the answers.

OnlineOnline assistance is readily available at www.orea.com by logging in to My Portfolio, your personal resource base for all of your course and career development information, or My OREA Community, where you can participate in Education Forums moderated by experts who will provide practical answers to your questions.

By PhoneIf you’re an e-Learning or correspondence student with course content questions, call the Instructor Support Line at 1-866-444-5557, Monday to Friday, 9:30am-4pm.


FAQs

I am enrolled in a Land, Structures and Real Estate Trading classroom course. Am I guaranteed a seat in the subsequent The Real Estate Transaction – General and The Residential Real Estate Transaction or The Commercial Real Estate Transaction classroom course?

Enrolment for classroom courses is accepted on a first-come, first-served basis and course prerequisites must be met at time of enrolment. Students cannot reserve a seat in the Real Estate Transaction – General and The Residential Real Estate Transaction or The Commercial Real Estate Transaction before successfully completing Land, Structures and Real Estate Trading.

If I had a licence/registration cancellation in any other profession, can I still apply for Salesperson registration?

Application may be made but acceptance is not guaranteed. The Registrar, REBBA 2002 will review all applications on an individual basis. Contact RECO at (416) 207-4800 or 1-800-245-6910.

How old must I be to apply for Salesperson registration?

You must be 18 years of age. The courses can be completed before that, however, registration with RECO cannot occur until the age requirement has been met. All program timeframes must be observed.

What if I do not complete the three Articling Segment courses within the first two years that I am registered?

If the courses are not completed, you will not be allowed to trade in real estate. Registration renewals will not be processed until all three Articling Segment courses are completed. Other stipulations also apply. For further clarification contact RECO at (416) 207-4800 or 1-800-245-6910.

I haven’t received a receipt for my courses. Can I obtain one?

All students are provided with official income tax receipts which can be printed through their My Portfolio account. Can I write my examination earlier than the initially scheduled date?

Yes, you may request an earlier date. Notification must be received by the College at least 10 calendar days before the desired examination date. Classroom students may not write an examination prior to completion of the course.

How do I obtain my mark?

Transcripts reflecting the final mark for a course are posted online and are accessible only by the student through their account. Visitwww.orea.com Please allow approximately one week to process and post the mark to the My Portfolio account.

This publication is designed to provide new Salespeople with the ‘soft skills’ necessary to effectively transition from the classroom to the day-to-day business of trading inreal estate.

The kit includes three DVDs in addition to aseries of booklets. How Real Estate is Structuredin Ontario highlights the benefits and services provided by organized real estate. Sales Training for New Salespeople takes the viewer through interviews with salespeople and details many of the skills requisite to a successful career in real estate. Topics include business planning, time management, professionalism, prospecting techniques, and the strategies one may employ to convert For Sale by Owners to listings. The videos highlight and reinforce topics covered in detail in the booklets. Brokers of Record may also use this kit as an effective training tool for newly registered Salespeople.

How Real EstateIs StructuredIn OntarioTraining For SuccessDVD Video

Sales Training For New SalespeopleTraining For Success

DVD 1 of 2

Sales Training For New SalespeopleTraining For Success

DVD 2 of 2

Mentoring KitFor NewSalespeopleTraining For Success


Online

Go to www.orea.com and click on Become a Real Estate Professional on the Home Page and select the desired course..

PhoneCall the OREA Real Estate College Customer Service line at (416) 391-6732 or toll free at 1-866-411-OREA (6732).

In Person

Visit the OREA Real Estate College, 99 Duncan Mill Road, Don Mills, Ontario M3B 1Z2.

Steps to Enrolment

Meet Admission Requirements Go to www.orea.com and click on Become a Real Estate Professional on the Home Page. You will be given the admission requirements to The Salesperson Registration Education Program and how to provide documentation to the OREA Real Estate College.

Complete the Enrolment Contract Once you have been notified that admission requirements have been met, you will be asked to complete the Student Enrolment Contract online. Once the Enrolment Contract has been completed, you may enrol in Real Estate as a Professional Career in one of the following ways:

Information For Your Success

The following are basic attributes that a successful real estate professional must possess. These talents, qualities, and personal traits are building blocks to creating success:

• An understanding of basic math, ability to conduct research, organization & planning,

, negotiating skills, interview techniques, people skills, self-discipline & self-motivation, and basic computer knowledge.

Typical Day

Every day brings new challenges to a real estate professional. However, there are certain activities that can be considered to be a part of a typical day, such as: • preparing marketing materials so that they meet

submission deadlines and ensuring listing information is current and accurate.

• that they are kept up to date with the industry. These visits are often a combination of networking with other real estate professionals and administrative duties.

• reviewing listings for new properties and making note of the ones that are no longer available.

• setting up appointments with clients & customers. • checking communications from clients & customers that

there is more time.

Basic Attributes

LIFE AS A REAL ESTATE PROFESSIONAL

require

Notes


The Ontario Real Estate Association (OREA) was founded in 1922 to organize real estate activities and develop common goals in Ontario, such as promoting higher industry standards, protecting the general public, and preserving private property rights.


Ontario Real Estate Association99 Duncan Mill Road Don Mills, Ontario M3B 1Z2Telephone: 416-445-9910Fax: 416-445-2644Toll Free: 1-800-265-OREA (6732)www.orea.com

REALTOR® is a registered trademark of REALTOR Canada Inc., a company owned equally by the Canadian Real Estate Association and the National Association of REALTORS® and refers to registered real estate practitioners who are members of The Canadian Real Estate Association.

Printed in Canada ©2011 OREA
